What is an entrepreneurial leader?
Entrepreneurial leadership involves leading a team from the top, starting with the business owner. When done correctly, the traits and values of the leader trickle down into every facet of the business.
An entrepreneur is someone who bears the brunt of the risks of starting a business and enjoys most of the rewards. Taking risks, being creative and understanding how to make a profit are requisites for all entrepreneurs. However, it’s more important than ever that leaders understand how to instill the necessary core values and dedication in their teams.
Modern consumers and employees are savvy and empowered, which means leaders can no longer rely on old-fashioned leadership models. With Millennials and Gen Z poised to make up the majority of the workforce over the next decade, this style of leadership is set to become the standard. Authoritarian leadership is fast becoming outdated, as is the concept that employees should be passive and compliant.
Top qualities of entrepreneurial leaders
The best entrepreneurial leaders nurture leadership qualities in their teams, rather than discouraging pushback. They understand that an employee being able to replace them isn’t a threat, it’s an opportunity for them to move on to their next challenge. But there’s more to it than that if you’re looking to run a company that goes the distance.
Below, we outline the top characteristics of an entrepreneurial leader and explain why each one is important.
1. Expert
The first tenet of great entrepreneurial leadership is expertise. If you’re seen by your team, clients and stakeholders as an expert in your field, you’ll immediately command respect. Of course, being an expert also means you’re best placed to make smart decisions and take risks that pay off. With expertise comes confidence, which is nonnegotiable for leaders who want to be listened to and command respect.
2. Resilient
Resilience is a core value of all the most successful entrepreneurs. At the heart of being resilient lies the knowledge that mistakes are learning opportunities. Running a successful company relies on numerous unpredictable factors coming together, and things can easily go wrong. If you get disheartened or demotivated at every setback, you won’t get far. For every problem, there’s a solution, and a resilient mindset will help you find it quickly.
3. Persuasive
As a business leader, you need to be in constant sales mode. Every interaction is a chance to sell your business, and missing even the smallest one could be disastrous. It’s not just potential clients you’ll need to sell to—you also need to be able to convince suppliers, employees and the media of your company’s value and vision.
4. Visionary
Having a clear idea of what you’re working towards is vital. The more invested you are in your vision, and the clearer it is, the easier it’ll be to instill in your teams. People are in the best position to deliver on their KPIs when they know and understand what they’re working toward and why.
5. Takes Risks
The markets are constantly changing, with consumer expectations, technology, leadership best practices and supply and demand constantly in flux. An entrepreneurial leader is confident enough in their understanding of market forces that they take risks to get ahead of competitors and stand out in their industry.
6. Hardworking
Leaders whose teams work hard are always hardworking. When the head honcho is never seen to shirk hard graft, there’s no excuse for managers and employees. Leading from the top is about setting an example. While it’s important to provide your staff with a decent work-life balance , you’ll be able to ask for an extra push when necessary if you’re seen as sedulous yourself.
7. Inspirational and motivational
It might not be possible to rely on authority alone these days, and there are more sustainable, authentic ways of driving your workforce: inspiration and motivation. Getting people to do what you want them to do isn’t easy, but you’ll get the best results by providing tangible reasons for them to do so and leading by example.
8. Passion
Passion is often the difference between truly inspirational entrepreneurial leaders and average ones. Besides being an expert and hard-working, being passionate about the industry is one of the best examples you can set for your team. If you can inspire them to develop a true passion for what they do, clients will be the true beneficiaries.
9. Excellent communicator
Leadership is all about communicating your vision to the right people, and customization and personalization are buzzwords in today’s business world. As such, being able to communicate effectively according to individual preferences and requirements is vital. You should be able to inspire a CEO or board member just as adeptly as you can inspire the lowest-earning individual on your books.
10. Self-aware
Self-aware leaders are less likely to be manipulated because they’re less driven by ego. Not only that, but when you know your strengths and weaknesses, you can shape a team that compliments your needs.
Take an entrepreneur who’s exceptional at all of the above, but isn’t the best with numbers. A self-aware leader will hire a manager to fill this gap in their knowledge. As such, they’re unlikely to put themselves in a position to be manipulated by a supplier or partner who notices their weakness.
Entrepreneurial leadership FAQs
Are entrepreneurs born or made?
To an extent, there are inherited personality traits that make it easier to become an entrepreneur. Namely, having a propensity for hard work, intuition and communication. However, qualities, such as resilience, self-awareness and a passion for learning can be cultivated. Provided you have an unblinking drive to succeed, the desire to work relentlessly despite setbacks and the ability to inspire other people, you can make it as an entrepreneur.
Why is leadership so important?
Leadership is the bridge between a vision and execution of that vision by a team of people who don’t initially share it. The best leaders are experts at directing resources and can inspire people to realize their mission. The result of great business leadership is an effective, driven workforce and a product or service that people want to invest in.
What are the three styles of leadership?
In 1939, Kurt Lewin and his team defined three rudimentary styles of leadership: Autocratic, democratic and laissez-faire. In the first, the leader dictates and directs every element of work a team must do and supervises them closely. With the democratic style, the leader offers guidance but accepts feedback and input from the team. Finally, a laissez-faire leader sets goals and takes responsibility for outcomes but hands power over to the group. Lewin’s study found that democratic leadership led to the best outcomes.
